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Our Bureau

Mumbai, Oct. 5

Power Grid Corporation of India (PowerGrid), whose initial public offering fetched a record response last month, listed at a 73 per cent premium to its issue price of Rs 52 on the NSE on Friday.

The stock opened at Rs 89.80, peaking at Rs 109.50 before closing at Rs 100.60 (a 93.5 per cent premium to its issue price). The market valuation of the company at the closing price worked out to over Rs 42,000 crore.

Over 9.97 crore shares of the company were traded on BSE, and over 48.1 crore shares on NSE.

For a first day listing too, PowerGrid has set a record of sorts in the recent times. September and August listings this year saw Kaveri Seed company, Motilal Oswal, Omaxe, Take Solutions and others debut at a premium of between 20 per cent and 33 per cent to their issue price.

Other companies such as Everonn and Vishal Retail, which listed at astounding premia to their issue price (over 200 per cent) were much smaller in size.

“We knew we would get a good response, but this listing price is ‘lovely’,” said an official with one of the managers to the issue, who did not want to be named.

“The PowerGrid stock has moved a bit ahead of earnings and expectations although we did expect a premium of 40-50 per cent,” said Ms Shahina Mukadam, Head of Research at IDBI Capital Market Services.

“To some extent this kind of premium can be attributed to the strength of the company but it is more or less the fancy for the sector in the market,” said the Head of Research at a major broking house.

Power stocks such as Reliance Energy and NTPC have gained enormously in the current stock market rally.

PGCIL, whose issue size was Rs 2,985 crore, fetched 1,90,000 crore in subscriptions. The QIB portion was subscribed 115 times. Managers to the issue said FII subscriptions amounted to $30 billion, the largest ever for any Indian IPO.

The PSU is the principal power transmission company in the country. A marked feature of its IPO was the keen interest from pension funds on account of its low-risk, assured income business, said analysts. The Government owns 86.36 per cent stake in the company post the IPO.

More Stories on : Power | IPOs

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